Role of micro finance in women’s empowerment (an empirical study in pondicherry region rural shg’s)

Abstract

Microfinance is a type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Micro finance through Self Help Group (SHG) has been recognized internationally as the modern tool to combat poverty and for rural development. Micro finance and SHGs are effective in reducing poverty,empowering women and creating awareness which finally results in sustainable development of the nation. The main aim of microfinance is to empower women. In this paper the role played by Microfinance in women’s empowerment are considered into three dimensions namely psychological,social and economical. The objectives of the study is i) to understand the performance of SHG’s in Pondicherry region, ii) to analyze the freedom women members get in SHG’s, iii) to study the problems women members face in SHG’s, iv) to analyze the empowerment of the women psychologically, economically and socially and v) to offer suggestions for the betterment of women’s empowerment in SHG’s. The study is undertaken in rural areas of Pondicherry region. Both primary and secondary data’s are used. Primary data is enumerated from a field survey in the study region.Secondary data is collected from NGOs’ reports and other documents. The researcher has used percentage method, simple correlation coefficient, paired t test and cross tabulation for analysis purpose. Analysis showed that there is a gradual increase in the all the three factors among rural women’s. From the interaction among the respondents it is noticed that some members are expecting the NGO to come up with more training sessions in income generating activities. All they need is away to develop their skills and talents by participating in various training programs. There is a definite improvement in psychological well being and social empowerment among rural women as a result of participating in micro finance through SHG program.